By JEDDAH: GALAL FAKKAR, ARAB NEWS STAFF

The Court of Grievances will be the final decision maker in any dispute between the Zakat payer and the Zakat and Income Tax Department over matters of assessment involving this Islamic obligation, an official has said.

“The new Zakat regulation, which has reached its final stage prior to implementation, has been prepared after studies of expert committees and on the basis of relevant fatwas, ministerial decisions and royal decrees,” said Ibrahim Al-Mufleh, director general of the department.

The new regulation also empowers the department to summon any defaulter of Zakat payment in addition to banning a defaulter from traveling outside the Kingdom, he said.

Al-Mufleh added that the Kingdom started implementing the Shariah-based collection of Zakat during the reign of King Abdul Aziz. He also said the Kingdom’s tax system is the seventh among most advanced tax systems in the world.

He said Zakat revenue crossed SR10 billion while revenue from income tax imposed on foreign companies operating in the Kingdom reached SR9 billion in 2011.

He also pointed out the difference in the assessment of tax for foreign investors and calculation of Zakat.

While the tax is assessed at 20 percent of the profits of investments, Zakat is calculated at 2.5 percent of total assets.

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